subject: Personal debt relief - how to take advantage of the recession to settle bad debt [print this page] Personal debt relief - how to take advantage of the recession to settle bad debt
Almost every American is looking for personal debt relief. This is because of the fact that they are affected by recession and they have lost their jobs. They are now unable to repay their debts to the creditors and they are becoming defaulters. If you are reading this article, you are one among them and you need help with your bad debts. The best thing that you can do is to take advantage of the recession itself and get out of debt. Because of recession, thousands of people filed for bankruptcy. The sudden boost in the number of bankruptcy filings caused serious problems for the creditors. They lost billions of dollars and they lost their financial equilibrium. It is because of this reason that the creditors are now afraid of bankruptcy. Since the creditors lost their financial equilibrium, they reached a state of bankruptcy. This cause the entire economy to become weak.
To stop this the US government announced that the creditors who agree for debt settlement deals will be allowed to enjoy the following benefits:
* Those creditors who agree for debt settlement deals will be allowed to use the stimulus cash to cover up their costs.
* Those creditors who agree for debt settlement deals will be allowed to enjoy reduction in tax to compensate for their loss of interest income.
Why these two announcements were made? The first policy ensured that the creditors were able to maintain their financial balance. When the creditors agree for debt settlement deals, they lose a certain portion of their principal money. This is the money that they use for business and also to cover up the costs that they have. When the creditors lose this money, they fail to cover the costs that they have. The creditors will be given access to stimulus cash so that they can use that money to cover the costs that they have which includes staff salary, organizational and operational costs. They will not be allowed to use this money for direct business. Next when the consumers agree for debt settlement deals, they fail to get the interest earnings. This is a loss and the loss increases when they pay the same amount of taxes with reduced income.
To compensate for this loss of income, the government announced that the creditors who agree to settlement deals will have to pay less taxes. Because of these two policies of the government, the creditors opened up for debt settlement and this helped the consumers. The consumers can now get rid of their debts without actually losing their credit score. This is where you can take advantage of recession and use settlement to eliminate your bad debt.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.
